INDIANAPOLIS | Prepaid mobile phone customers can expect to pay a little bit more for their service, starting July 1.
A new state law requires retailers of prepaid mobile phone cards and services to charge an extra 25 cents per sale for the Prepaid 911 Enhancement Fee.
Revenue from the fee will be used to improve 911 emergency telephone service in Indiana.
According to the Indiana Department of Revenue, the fee should not be added to the base price of the product, which would add to the purchaser's sales tax liability. The fee should be charged as a separate line item and added to the bill after sales tax is calculated.
Retailers are required to inform customers of the fee when selling prepaid mobile phone cards or services.
The fee must be paid on every separate prepaid mobile phone sales transaction, according to the revenue department.
Nonprepaid wireless customers are still required to pay a monthly 911 enhancement fee of 50 cents.
